Randgold Resources and AngloGold Ashanti have high hopes for the modernisation of the idled Obuasi gold mine, in Ghana, which has been a poor performer in the last decade. Read on page 12 of this edition of Mining Weekly of Randgold wanting to lead the way in making the five-million-ounce-plus reserve profitable at $1 000/oz for a capital outlay of less than $1-billion. If ratified, this proposed joint venture (JV) will be the third that the two gold mining companies tackle – but one with a difference. Neither their Morila JV, in Mali, nor their Kibali JV, in the Democratic Republic of Congo, had the environmental baggage that comes with reviving Obuasi. But the environmental legacy also comes with opportunity because the tailings dumps and the openpits that mining since 1897 has left provide the potential for an early revenue stream, along with the fulfilling of rehabilitation obligations. An early revenue stream could ease the fundraising that will be required for the rebuilding of this mine, which has been both State- and private-sector-owned at different times since coming into being 118 years ago. London-listed gold mining company Randgold and Johannesburg- and New York-listed AngloGold Ashanti have concluded an investment agreement aimed at turning Obuasi into a mechanised mine where global best practice is the order of the day.
By making improvements of just 1% to operational efficiency through blasting optimisation, coal operators can save significant costs, says explosives manufacturer AEL Mining Services. Read on page 22 of this edition of Mining Weekly of AEL finding that precision blasting and the correct use of energy have the potential to reduce the full cycle of a dragline by one second or to throw the rock one metre closer to its destination. The company’s data also indicates that these improvements compounded over five years provide the opportunity to generate hundreds of millions of rands in additional revenue without increasing labour and equipment. The company contends that precision blasting has the potential to add value to every single stage, from the mine to the mill.
The World Nuclear Association projects that uranium supply will lag nuclear power generation capacity growth in the next 20 years. Read on page 18 of this edition of Mining Weekly of nuclear electricity output being set to increase at a faster rate than has been the case for more than two decades, creating an opportunity for uranium miners. Nuclear power currently contributes more than 10% of world electricity supply and the prospects for new reactor builds continue in China, India, Korea, the European Union and the Middle East. Despite that, world uranium output has flattened, with the currently depressed uranium prices curtailing exploration and resulting in some mines being placed on care and maintenance, which places questions marks over future supply.